Tesco is expected to admit that it does not anticipate its US chain of Fresh & Easy stores to break even this year when it announces its latest full-year results tomorrow.

Fresh & Easy is eating through capital expenditure at a rate of £250m a year, according to The Guardian.

One analyst told the newspaper he expected the chain to have racked up operating losses of around £100m for the past 12 months.

Investment in the chain, which made its debut in autumn 2007, is now thought likely to be cut – despite Tesco being tipped to announce record group profits of £3bn this week.

Another analyst estimated that if Tesco pulled out of the US today, its American venture would have cost the retailer around £1bn in total.

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